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Stan Purchased 400 Pairs of Gloves from Isaac at a Contract

Question 41

Multiple Choice

Stan purchased 400 pairs of gloves from Isaac at a contract price of $800.Fifty of the gloves were defective,and a dispute arose as to the amount due and owing under the contract.Stan refuses to pay the $800,and Isaac is threatening to sue.Which of the following is correct with regard to this transaction?


A) If Isaac agrees to accept $600 to settle the dispute and Stan agrees to pay that amount,the substitute agreement is enforceable.
B) If Isaac agrees to accept $600 to settle the dispute and Stan pays that amount,Isaac can still sue for the balance of $200 and will win the lawsuit.
C) Stan is under a pre-existing legal obligation to pay the $800.
D) Stan must return the defective gloves to Isaac,who must replace them.Then,Stan must pay the $800.

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